Organic Milk

Great article in the WSJ today about organic milk. It basically discusses market saturation and in turn comments on how businesses grapple with excess inventory when demand abruptly switches directions (or disappears). What's interesting is that organic dairy producers, wholesalers, markets, etc. are caught flatfooted not because consumers are going back to non-organic dairy but because consumers are purchasing alternative dairy, like plant-based products.

It's as if the market went, 'We don't want conventional milk, we want organic milk. Wait... we can have milk without having to have milk? Let's do that instead.' This leaves businesses in a difficult position because there's no leading alternative for dairy. Rather, there are a million different offerings that fill this gap. Alternative milk includes Soy milk, Almond milk, Hemp milk, Oat milk, Coconut milk, Rice milk, Almond-coconut milk... there's a lot of choice for a consumer.

This is nothing new. Market saturation and competition is common. But, it seems that these companies need to find a way to produce just-in-time to avoid these changing fads, or develop a product that leads the market so strongly that they can forecast changing trends far enough in advance to move production around.

Brandon Cohn